Using a Mortgage Calculator to Determine Your Home Loan Picture

By Kelly Richardson Columnist

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The Internet has a great new tool that is free for homeowners to use that you should know about. It's called a mortgage calculator, and you can find one on almost any real estate site. The mortgage calculator can actually show you what you'll be paying for a new mortgage, helping you to statically plan you next home loan.

According to most real estate professionals, foreclosures are at an all-time high in most states. The effects of increasing interest rates on option adjustable rate mortgages are taking their toll on the average American. And part of the problem is that borrower's are getting in over their heads from the beginning. But by using a mortgage calculator, you can remove a lot of the guesswork when it comes to getting a new home loan. Heres how.

A Mortgage Calculator for:

  • » Calculating Mortgage Payments. The primary purpose of a mortgage calculator is to help you to determine how much your mortgage payments will be. Simply enter loan value, down payment, and APR information.
  • » Renting Versus Buying. This type of mortgage calculator allows you to compare how much you'll be paying in rent as opposed to putting something down on a new home. Enter in information concerning your current rent plus future home requirements.
  • » How Much You Can Afford. Similar to the mortgage payment function, this mode allows you to enter information concerning type of mortgage you'll be buying plus information on your current debt totals.
  • » How Much You Can Borrow. This type of mortgage calculator takes into consideration your current monthly income to help you to determine how much you should borrow on a new home loan.
  • » Amortization. Amortization is the way you'll pay back your mortgage and considers length of repayment and annual interest. This calculator will let you know exactly how long it takes to pay off your mortgage in years.
Don't go into your next real estate venture with blinders on. There are ways to plan out each detail and increase your probability of finding a good deal. Use a mortgage calculator to determine your current and projected financial status. Because knowing is half the battle.

About the Author
Kelly Richardson covers the real estate scene in major cities across the country. His articles appear in educational journals, periodicals, and e-zines.

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